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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: freelyhovering who wrote (11731)	2/1/1998 7:39:00 PM
From: Al Greenleaf	Respond to of 79270

Hi Myron! Here's my read on the Bollinger Bands for CPRD. If you see anything wrong in this please let me know. Using a twenty-day exponential moving average with the BB's set at two standard deviations, they had narrowed considrably and were the narrowest since October 1997. The narrowest point was on 1/26/98. In the four sessions since then the stock has risen to 24 1/8, just above the resistance level of 23 1/4 from the high of 12/31. Since 1/26, they have begun to spread, which typically means "the stock is going to go SOMEWHERE". That "somewhere" has been up so far, as the candles have gone to the top band, and followed it up, with slight protrusions above that band. The basing pattern from 1/13 to 1/26 supported that upmove. The formation of a higher low on 1/9 also supported that upmove. If you look at the same bands on 8/22/97 you will see a similar pattern of expansion, that lasted for 22 days. I would never use the Bollinger Bands alone. But the fact that every indicator I have is positive, plus the "narrowed, and then expanding" Bollinger Bands leads me to believe that this will continue upwards based on the whole picture painted by these indicators and by the rising volume for the last month. This second look made me see something I did not see before. The 100 and 200 dmas are converging right at the current price. If the move continues Monday, and closed above both, this would be an additional bullish factor. (and not, if it doesn't). Regards, -Al